Indian Businesses Embrace AI with Open-Source Focus
Indian enterprises are rapidly adopting artificial intelligence (AI), with a strong emphasis on long-term investment and open-source technologies. A new study by IBM reveals that 87% of Indian IT decision-makers have made significant progress in executing their 2024 AI strategy, and 76% report achieving a return on investment (ROI) from their AI initiatives.
This commitment to AI innovation is further evidenced by the fact that 93% of Indian businesses plan to increase their AI investments in 2025. Notably, 71% of companies will leverage open-source ecosystems to optimize their AI deployments, highlighting the growing preference for open-source solutions.
The study identifies key areas of focus for maximizing AI benefits, including increased adoption of open-source tools (71%), use of managed cloud services (70%), and hiring specialized AI talent (66%). However, challenges remain, with the top barriers to AI implementation being lack of AI governance frameworks (53%), shortage of AI expertise (51%), technology integration issues (51%), data management challenges (41%), and failure to deliver business value (39%).
Despite these challenges, Indian businesses are optimistic about the future of AI. Nearly 48% report that over half of their AI solutions are based on open-source technologies, with large enterprises particularly embracing this approach for enhanced flexibility and innovation.
While 76% of Indian businesses report achieving a positive ROI from their AI projects, many are also focusing on alternative success metrics such as productivity gains. This shift reflects the growing understanding that AI's value extends beyond traditional hard-dollar ROI.
Overall, the study paints a picture of an Indian business landscape rapidly embracing AI with a focus on long-term investment, open-source technologies, and responsible implementation. As companies continue to refine their AI strategies and overcome implementation challenges, the potential for AI-driven innovation and growth in India appears significant.